Fortis Group Payroll

FORTIS GROUP PAYROLL

Manager Tip!

Hourly Pay

Employee Check-In's

Holiday Pay

How it all Comes Together

Service Commission

Retail Commission

Tips

Payroll Schedule

Paid Time Off

2024 PAY DAYS

FORTIS GROUP HOLDINGS, LLC

February 15 February 29 March 15 March 29 April 15 April 30 May 15 May 31 June 14 June 28 July 15 July 31 August 15 August 30 September 13 September 30 October 15 October 31 November 15 November 29 December 13 December 31

Tiered Service commission

productivity = profitability

What?

Why?

How?

Commission Tiers!

Stylist Example!

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What is tiered commission structure?

A tiered commission structure is a type of sales commission plan that offers different commission rates for different levels of performance. Higher levels of performance earn higher rates of commission. This structure is designed to motivate all team members at every stage of a pay period by using higher rates of commission as the incentive for continued effort. A tiered commission structure is used in conjunction with base hourly to reward every employee for the work they do.

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why?

to better support us all

Motivation: Tiered commission structures provide employees with clear incentives to strive for higher sales targets. As they reach higher tiers, they can earn progressively larger commissions, which motivates them to perform better. All of this helps YOU as you aim for your Monthly Targets. Fairness: Tiered structures have been designed to reward employees based on their performance relative to set benchmarks. This means that high performers are appropriately rewarded for their efforts, while still providing earning opportunities for those who may be newer or less experienced. In otherwords - providing more for high performers without taking anything away from lower performers Collaboration: Tiered structures can encourage collaboration among team members. Since individual success contributes to the overall team's success, employees are often more willing to share insights, resources, and strategies to help each other achieve their goals.

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why? pt2

to better support us all

Continuous Improvement: Employees are incentivized to continually improve their performance in order to reach higher commission tiers. This fosters a culture of education, growth, and development within Fortis Group as individuals seek out ways to enhance their skills and productivity. Alignment with Company Goals: Tiered commission structures are aligned with the company's overall objectives, encouraging behaviors and outcomes that are in line with Fortis Group goals. At Fortis Group, we are invested in our employees; we want each person to be rewarded appropriately for all the hard work they bring to each of our salons.

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how does this work?

In our tiered commission structure, productivity is used to determine which tier an employee falls into. This means, the more productive an employee is, the higher their commission tier and potential earnings. Productivity is measured by total sales divided by total hours. Employees who consistently meet or exceed productivity targets are rewarded with higher commission rates or additional incentives, motivating them to continue performing at a high level. This structure encourages employees to be proactive, efficient, and focused on achieving results, ultimately benefiting both the individual and the company as a whole

Productivity = service sales/total hours

For Example:

$4,000 in total service sales 70 hours in pay period $4,000/70= $57.14 per hour

$57.14

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STYLIST A

STYLIST B

Service Sales: $4,265

Service Sales: $2,739

Hours Worked: 77

Hours Worked: 70

Productivity: $55.39/hour

Productivity: $39.13/hour

Commission Tier Reached $55+ = 12%

Commission Tier Reached $35 - $39.99 = 2%

Service Commission: $511.80

Service Commission: $54.78

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tips

all the information you ever needed

CASH

CREDIT CARD

CASH TIPS

PER THE INTERNAL REVENUE SERVICE A.K.A. THE i.r.s.

The IRS requires employees to report all cash tips received, regardless of the amount. According to IRS regulations, employees must report cash tips totaling $20 or more received in any single month to their employer by the 10th day of the following month. The employer is then responsible for withholding the appropriate taxes from the employee's wages based on reported tips. It's important for employees to keep accurate records of their cash tips and report them honestly to comply with IRS regulations. Failure to report cash tips can result in penalties and legal consequences for both the employee and the employer.

Since When!?

Cash Tip Definition

Responsibility to Claim

Why Should I?

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credit card TIPS

employers are required to report for several reasons

Tax Compliance: Employers are responsible for withholding the appropriate amount of taxes on behalf of their employees. This includes taxes on tip income. Reporting credit card tips helps ensure that employees' tip income is accurately recorded and taxed. Recordkeeping: Reporting credit card tips allows employers to maintain accurate records of their employees' income and tip earnings. This information may be needed for tax purposes, payroll processing, and other financial reporting requirements. Legal Compliance: Federal and state laws require employers to report all income, including tips, to tax authorities. Failing to report credit card tips can lead to penalties and legal consequences for employers. Employee Benefits: Some employee benefits, such as Social Security and Medicare contributions, are based on total income, including tips. Reporting credit card tips ensures that employees receive the appropriate benefits based on their total earnings. Overall, reporting credit card tips is essential for employers to comply with tax laws, maintain accurate records, and ensure that employees receive the benefits and compensation they are entitled to under the law.

I only took cash!?

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Hourly Pay

$870

$12/hour

72.5 hours

Approved PTO

$96

8 hours

Retail Commission

$14

$140/sales

$4,221/sales@ 12%

Service Commission

$506.52

Credit Card Tips

$759.78

18%

Add it up!

Total gross revenue

aka pre-tax

$2,246.30

Due to the individual nature of each team member's potential tax situation - every person could see a different tax deduction from this gross amount.

This is outside the scope of Fortis Group Holdings, LLC - and any issues or concerns with the amount being witheld should be taken to a tax professional.

FORTIS IS LIABLE

If you claim $0 in tips...

Fortis Group may allocate a certain percentage of service sales as assumed tips, as we are in industries where tipping is customary. This allocation ensures that employees' reported tip income meets minimum requirements set by the employer or regulatory agencies, even if actual tips reported by employees fall below that threshold.

IRS Tip Information

Employers also use this allocation as a means to comply with legal requirements related to tip reporting, especially if they have reason to believe that employees are not accurately reporting their tip income. By allocating a portion of service sales as tips, employers can demonstrate to tax authorities that they are taking steps to ensure compliance with tip reporting regulations.

I didn't accept any Credit Card Tips

& didn't claim my cash!!

Why does my paycheck show claimed CC Tips!?

In some cases, employers may allocate a certain percentage of service sales as assumed tips, especially in industries where tipping is customary. This allocation ensures that employees' reported tip income meets minimum requirements set by the employer or regulatory agencies, even if actual tips reported by employees fall below that threshold.

Employers may use this allocation as a means to comply with legal requirements related to tip reporting, especially if they have reason to believe that employees are not accurately reporting their tip income. By allocating a portion of service sales as tips, employers can demonstrate to tax authorities that they are taking steps to ensure compliance with tip reporting regulations.

SINCE WHEN!?

The requirement for employees to report cash tips to their employers has been in place for several decades. However, specific laws and regulations regarding tip reporting have evolved over time. One significant milestone in this regard was the passage of the Tax Reform Act of 1986, which introduced stricter regulations regarding tip reporting and withholding. Since then, there have been various updates and clarifications to the regulations surrounding tip reporting, but the fundamental requirement for employees to report cash tips has remained consistent.

For more information visit irs.gov

Holiday Pay

Will be automatically added by Bookkeeping.Full-Time Employees receive 6 hours of pay, while Part-Time Employees receive 3 hours of pay for any Holiday in which we are closed for business. These Holidays (subject to change)are listed below:

• New Year's Day (Jan 1)

• Independence Day (July 4)
• Thanksgiving Day
• Christmas Day

Why should I Claim?

• Not claiming any type of income is illegal and considered Tax Evasion. Should the IRS choose to audit, you will owe big.
• Should you want to get a loan, buy a home, or anything else that requires income verification - unclaimed cash does not count.
• As you work and pay FICA taxes, you earn credits for Social Security benefits. If you have not claimed a large amount of earnings, you will see fewer Social Security benefits upon retirement.

Accurate income reporting helps you in the long run!

Employee Check-In's

Location Manager Responsibilities

• Build appropriate schedules; employees scheduled for the full business hours
• Ensure any meal breaks are taken off the clock
• Adjust any time clocks as needed
• Make any corrections by the 5th/19th of each month

• Build Schedule & Adjust Time Clocks

Zenoti Quick Reference for Managers

Guaranteed Commission!

• $0 - $150 Sold = 10% Commission
• $150.01 - $250 Sold = 12% Commission
• $250.01+ = 15% Commission

You can usethis function...To see what your take home would be based on your retail sales!

With the three tiers of commission, this elevates your opportunity to earn more money! Increasing your commission exponentially with up to an additional 5% than was available pre-Zenoti!

+Help

% Calculator

Hourly rates are looked at yearly to compare across local markets and competitors to ensure the best possible outcome for all team members!

Base hourly pay refers to the fixed wage that employees receive for their work, regardless of performance or productivity. It provides a stable income foundation, offering financial security irrespective of sales or output fluctuations.

+Did you know?

Input Employee PTO

Everyone Deserves Vacation!

Beginning in 2024, Illinois implemented a law ensuring every employee recieves at least 1 week of Paid Time Off per year. At Fortis Group - we give our Full Time employees up to 3 weeks per year based on longevity with Supercuts. All PTO is subject to manager approval. Please ensure that your location is fully staffed at all times, so that no excessive PTO days overlap. PTO must be input on the day it is "taken" in order to appear on the correct payroll!

1. Employee Requests a date to use PTO
2. Manager looks at Calendar to approve or deny
3. If approved - go into the schedule and change shift to "Requested Time Off". This will be a helpful reminder for you!
4. On the date of approved PTO - follow the instructions below to add PTO for that team member.

How to Input PTO for your team!

Claiming Cash

Zenoti does require you to claim all your tips for accurate record keeping. We do not claim these on your paychecks so that they do not get taxed by the government.

Employers have a responsibility to educate their employees about the requirement to report tips, provide a method for employees to report their tips (Zenoti), and withhold the appropriate taxes from reported tip income.

When tips reported are at unlikely low amount based on total pay, this raises massive red flags for the IRS and can lead to severe consequences for both the employee and employer. When this happens, it impacts Credit Card Tip Claiming.

Additionally, employers are required to report tip income to the IRS on behalf of their employees. Failure to comply with these regulations can result in penalties for the employer.

Definition of "Cash Tip"

When discussing tips - Cash Tips refers to the tip given to an employee directly from a client in the form of cash. This does not include any tips given via Credit card that are taken out of the drawer.

See it all together now:

Let's look at how all of this comes together to create your paychecks!!

Let's Go!